BILL NUMBER: AB 807	CHAPTERED  10/10/99

	CHAPTER   963
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 10, 1999
	PASSED THE SENATE   SEPTEMBER 9, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 9, 1999
	AMENDED IN SENATE   SEPTEMBER 7, 1999
	AMENDED IN SENATE   SEPTEMBER 3, 1999
	AMENDED IN SENATE   AUGUST 25, 1999
	AMENDED IN SENATE   AUGUST 18, 1999
	AMENDED IN SENATE   JULY 8, 1999
	AMENDED IN ASSEMBLY   APRIL 6, 1999

INTRODUCED BY   Assembly Member Keeley

                        FEBRUARY 24, 1999

   An act relating to water.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 807, Keeley.  Pajaro River Watershed Flood Prevention
Authority.
   (1) Existing law authorizes specified entities to provide flood
control benefits.
   This bill would enact the Pajaro River Watershed Flood Prevention
Authority Act, which would grant specified powers to the Pajaro River
Watershed Flood Prevention Authority, as created under the act.  The
bill would designate the boards of supervisors of certain counties
and the boards of directors of certain local districts as "appointing
authorities."  The bill would require the appointing authorities to
appoint members to the board of the authority, thereby imposing a
state-mandated local program on those specified local boards.  The
bill would specify boundaries, purposes, and governance of the
authority.  The bill would authorize the authority to undertake flood
prevention and control projects within the boundaries of the Pajaro
River Watershed, as prescribed.  The bill would authorize the
authority to levy and collect assessments and special taxes and to
sell bonds in accordance with prescribed procedures.  The bill would
define terms and prescribe related matters.
   The provisions of the bill would become inoperative on July 1,
2000, and would be repealed on January 1, 2001, upon the occurrence
of certain specified events.
  (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature hereby finds and declares all of the
following:
   (a) The Pajaro River Watershed consists of more than 1,400 square
miles of land.  Much of the watershed is prime agricultural and
rangeland, providing a strong base for the region's economy.  Much of
the land within the watershed provides housing, employment,
recreation, and education opportunities for central coast residents
and visitors from throughout the state, nation, and world.
   (b) The Pajaro River Watershed includes portions of San Benito,
Santa Clara, Santa Cruz, and Monterey Counties, and each of those
counties is concerned about the ability of its communities to sustain
a high quality of life with regard to agriculture, housing,
commerce, education, and environmental protection.
   (c) The Pajaro River Watershed includes numerous streams, creeks,
rivers, wetlands, and estuaries that form the natural drainage system
that directs rainwater to the ocean.  The Pajaro River Watershed
also includes numerous manmade water collection, drainage, and water
disposal projects and systems that also direct rainwater to the
ocean.
   (d) The Pajaro River Watershed includes millions of square feet of
impervious surfaces, such as roads, parking lots, homes, commercial
and agricultural structures, schools and playgrounds, all of which
reduce the amount of natural groundwater recharge that would
otherwise be available to reduce rainwater runoff.
   (e) The Pajaro River Watershed includes flood control structures,
such as the Pajaro River levee system, that were designed and
constructed, in most cases, nearly 50 years ago.  Those flood control
structures are now proving to be inadequate to protect the area's
agricultural lands, commercial, residential, and public sector
buildings, and environmental resources.
   (f) The storms in the 1980's and 1990's have demonstrated that no
jurisdiction within the Pajaro River Watershed has fully mitigated
the impact of new construction on the existing drainage and flood
control system.
   (g) The lack of a local, intergovernmental, cooperative governance
structure for the Pajaro River Watershed prevents a systematic,
rational, cost-effective program of flood control and watershed
management from being identified, funded, and implemented.
   (h) It is the intent of the Legislature, through the enactment of
this act, to provide the leadership necessary to enable the local
governments and local residents of the Pajaro River Watershed to
exercise appropriate powers to ensure that the human, economic, and
environmental resources of the watershed are preserved, protected,
and enhanced in terms of watershed management and flood protection.
  SEC. 2.  This section shall be known and may be cited as the Pajaro
River Watershed Flood Prevention Authority Act.  It is intended to
supplement the Water Code and reads as follows:

      PAJARO RIVER WATERSHED FLOOD PREVENTION AUTHORITY ACT
      PART 1.  INTRODUCTORY PROVISIONS
      CHAPTER 1.  SHORT TITLE

   101.  This act shall be known and may be cited as the Pajaro River
Watershed Flood Prevention Authority Act.

      CHAPTER 2.  GENERAL PROVISIONS

   201.  (a) The need for coordinated planning, and the
implementation of strategies, for flood prevention and control within
the Pajaro River Watershed, and for the protection of public and
private property from those waters may appropriately lead to the
creation of the Pajaro River Watershed Flood Prevention Authority.
   (b) The purpose of the Pajaro River Watershed Flood Prevention
Authority is to identify, evaluate, fund, and implement flood
prevention and control strategies in the Pajaro River Watershed, on
an intergovernmental, cooperative basis.

      CHAPTER 3.  DEFINITIONS

   301.  "Appointing authority" means each of the following:
   (a) The Board of Supervisors of the County of Monterey.
   (b) The Board of Supervisors of the County of San Benito.
   (c) The Board of Supervisors of the County of Santa Clara.
   (d) The Board of Supervisors of the County of Santa Cruz.
   (e) The Board of Directors of the Zone 7 Flood Control District.
   (f) The Board of Directors of the Monterey County Water Resources
Agency.
   (g) The Board of Directors of the San Benito County Water
District.
   (h) The Board of Directors of the Santa Clara Valley Water
District.
   302.  "Authority" means the Pajaro River Watershed Flood
Prevention Authority.
   303.  "Board" means the board of directors of the authority.
   304.  "Incidental expenses" includes all of the following:
   (a) The cost of planning and designing projects pursuant to this
act, including the costs of environmental evaluations and mitigation
for those projects.
   (b) The costs associated with the creation and administration of
any financing arrangement authorized by this act, including, but not
limited to, the costs of creating or modifying assessment or special
tax districts, the costs of collecting assessments and special taxes,
and the costs arising from the issuance and administration of any
bonds issued under this act.
   (c) Any other expenses incidental to the construction, completion,
inspection, financing, or refinancing of any authorized project,
including relocation costs.
   305.  "Local agency" means any local public entity.
   306.  "Pajaro River Watershed" means the watershed area of the
Pajaro River and its tributaries as described in the General Map of
the Pajaro River Basin (Plate 1), U.S. Army Corps of Engineers'
"Interim Report for Flood Control, Pajaro River Basin, California and
Appendices," dated June 1963.
   307.  "Project" means the acquisition, construction, maintenance,
or operation of any flood control or prevention facility authorized
under this act, including, but not limited to, the acquisition of any
right-of-way and payment of incidental expenses.  Participation in a
project includes making payments or other contributions pursuant to
any contract entered into with another governmental agency that
requires the other governmental agency to perform work on a project.


      PART 2.  ORGANIZATION AND POWERS
      CHAPTER 1.  MEMBERSHIP, BOUNDARIES, AND GENERAL POWERS

   401.  (a) A board of directors consisting of eight members shall
govern the authority.  Each appointing authority shall appoint one
member to the board, subject to all of the following:
   (1) The Board of Supervisors of Monterey County shall be
represented by the supervisor from the supervisorial district that is
adjacent to the Pajaro River.
   (2) The Board of Supervisors of Santa Cruz County shall be
represented by the supervisor from the supervisorial district that is
adjacent to the Pajaro River.
   (3) The Zone 7 Flood Control District shall be represented by a
person who resides in the portion of Santa Cruz County that is
adjacent to the Pajaro River.
   (4) The Monterey County Water Resources Agency shall be
represented by a person who resides in the portion of Monterey County
that is adjacent to the Pajaro River.
   (b) On or before July 1, 2000, the appointing authorities shall
appoint the initial members of the board.
   (c) At its discretion, an appointing authority may appoint one of
its own members as a member of the board.
   (d) To the extent feasible, it is the intent of the Legislature
that the persons appointed to the board by the appointing authorities
be broadly representative of the geographic, ethnic, racial, gender,
and cultural diversity of the residents of the authority.
   (e) To the extent feasible, it is the intent of the Legislature
that the persons appointed to the board by the appointing authorities
have knowledge and experience in one or more of the following
fields:  flood control, habitat conservation and restoration, land
use planning and development, public finance economics, and water
resources.
   402.  Except for the directors appointed to the initial board, the
directors shall serve for terms of four years.  The eight directors
initially appointed shall determine, by lot, the expiration dates for
their initial terms.  The terms of four directors shall expire on
January 1, 2003.  The terms of the four other directors shall expire
on January 1, 2005.  Thereafter, each appointing authority shall
appoint a person to replace its respective director.  The respective
appointing authority shall fill a vacancy on the board within 90 days
immediately subsequent to its occurrence.
   403.  Each director may receive compensation in an amount set by
the board, not to exceed fifty dollars ($50) per day for each day's
attendance at meetings of the board, not to exceed four meetings in
any calendar month, together with actual, necessary, and reasonable
expenses incurred in the performance of duties required or authorized
by the board.
   404.  (a) At its first meeting and at its first meeting in January
each year thereafter, the board shall elect a chair and vice-chair
from among its members.
   (b) Five members of the board shall constitute a quorum for the
transaction of business.
   (c) The board shall act only by ordinance, resolution, or motion.
Except as specifically provided to the contrary by law,  the
affirmative vote of five members of the board is required on each
action.
   405.  The board may employ and appoint any agents, officers,
employees, attorneys, and consultants as may be required, prescribe
their duties, fix their compensation, and prescribe the terms and
conditions of their employment.
   410.  The boundaries of the authority shall be coterminous with
the Pajaro River Watershed.  On or before December 1, 2001, the board
shall file a description of the exterior boundary of the authority
pursuant to Chapter 8 (commencing with Section 54900) of Part 2 of
Title 5 of the Government Code.
   420.  (a) The authority may undertake flood prevention and control
projects within the Pajaro River Watershed.
   (b) The authority's activities, programs, and projects shall
address the protection of life, public and private property,
agricultural crops, watercourses, watersheds, environmental
resources, and public highways within its boundaries from damage from
flood and storm waters.  In addition, to the maximum extent
economically feasible and consistent with its flood protection and
flood management requirements and with state and federal agreements,
the authority shall comply with all applicable environmental laws and
regulations.  Nothing in this act is intended to amend, modify, or
alter the jurisdiction or authority of the Department of Fish and
Game or the provisions of the California Environmental Quality Act
(Division 13 (commencing with Section 21000) of the Public Resources
Code) or any other state or federal laws whose purpose is to protect
and preserve the natural environment.
   421.  In furtherance of its purposes, the authority may apply for
and receive state and federal grants, loans, and other funding.
   422.  The authority may charge and each appointing authority shall
pay the authority an amount sufficient to fund administrative costs
associated with the operation of the authority, including, but not
limited to, the costs of meeting notices, agendas, and other
administrative functions.
   423.  Each local agency that includes territory within the Pajaro
River Watershed shall notify the authority before undertaking any
flood prevention and control activities, programs, and projects
within that watershed.

      PART 3.  FINANCIAL PROVISIONS
      CHAPTER 1.  GENERAL FINANCIAL PROVISIONS

   501.  The authority may, in any year, levy assessments,
reassessments, or special taxes and issue bonds to finance projects
in accordance with, and pursuant to, the Improvement Act of 1911
(Division 7 (commencing with Section 5000) of the Streets and
Highways Code), the Improvement Bond Act of 1915 (Division 10
(commencing with Section 8500) of the Streets and Highways Code), the
Municipal Improvement Act of 1913 (Division 12 (commencing with
Section 10000) of the Streets and Highways Code), the Benefit
Assessment Act of 1982 (Chapter 6.4 (commencing with Section 54703)
of Part 1 of Division 2 of Title 5 of the Government Code), the
Integrated Financing District Act (Chapter 1.5 (commencing with
Section 53175) of Division 2 of Title 5 of the Government Code), the
Mello-Roos Community Facilities Act of 1982 (Chapter 2.5 (commencing
with Section 53311) of Part 1 of Division 2 of Title 5 of the
Government Code), and the Marks-Roos Local Bond Pooling Act of 1985
(Article 4 (commencing with Section 6584) of Chapter 5 of Division 7
of Title 1 of the Government Code).
   502.  Notwithstanding the provisions of any assessment act that
the authority is authorized to use, any assessment diagram that any
of those acts requires to be prepared prior to final approval of the
authority need show only the boundaries of any assessment zones
within the authority.  The diagram may refer to the county assessor's
maps and records for a detailed description of each lot or parcel.
   503.  (a) Notwithstanding any other provision of law, the
authority may levy and collect assessments and reassessments in the
same manner as provided in Article 3 (commencing with Section 51320)
of Chapter 2 of Part 7 of Division 15 of the Water Code, for any or
all of the following purposes:
   (1) For the operation and maintenance of projects of the
authority.
   (2) For the satisfaction of liabilities arising from projects of
the authority.
   (3) For the administration costs of the authority.
   (4) To accumulate a fund that may be used to advance the cost of
projects of the authority.  However, the advances shall be repaid,
with interest as determined by the board, from assessments,
reassessments, special taxes, or fees charged by the authority
pursuant to this act.
   (b) For purposes of this section, the board shall perform all the
functions assigned by Article 3 (commencing with Section 51320) of
Chapter 2 of Part 7 of Division 15 of the Water Code to the board of
supervisors or the board of trustees.
   (c) For purposes of this section, the board may order the creation
of a separate assessment roll to pay the allowable expenses of any
single project or any group or system of projects.
   (d) An assessment, reassessment, or special tax may be imposed
throughout the entire area of the authority, or within a portion of
the area of the authority.
   (e) The imposition of any assessment, reassessment, or special tax
shall be in accordance with Articles XIIIC and XIIID of the
California Constitution.
   504.  Notwithstanding any other provision of law, Division 4
(commencing with Section 2800) of the Streets and Highways Code does
not apply to any assessment levied by the authority.
   505.  (a) Notwithstanding any other provision of law, all
assessments, reassessments, and special taxes levied by the authority
may be collected together with, and not separately from, taxes for
county purposes.  Any county that is located within the authority
shall collect, at the request of the authority, all assessments,
reassessments, and special taxes levied by the authority and shall
deposit those revenues with the trustee appointed pursuant to Section
801 to the credit of the authority.
   (b) Each county may require that the amount to be collected be
increased to include a proportionate amount of the county's
reasonable collection and administrative costs, not to exceed ten
dollars ($10) per installment for each lot or parcel, as
reimbursement for expenses incurred by the county in collecting the
assessment, reassessment, or special tax, if that action is in
accordance with Articles XIIIC and XIIID of the California
Constitution.
   506.  Notwithstanding any other provision of law, any assessment
or reassessment levied pursuant to this act shall be apportioned on a
reasonable basis, as determined by the board, which may be based on
land use category, proportionate storm water runoff, relative hazard
of flooding, or infrastructure protection.
   507.  Notwithstanding any other provision of law, the board may
include within the authority's annual budget a general unappropriated
reserve fund not to exceed 25 percent of the total appropriations
included in the authority's budget, exclusive of all items for bond
interest and redemption, and the general appropriated reserve.  The
reserve fund may be used for emergencies, replacements, or other
lawful purposes of the authority.

      CHAPTER 2.  SPECIAL CAPITAL ASSESSMENTS
      Article 1.  Formation of Zones

   601.  As an alternative or in addition to any other power
available to the authority, the authority may, in any year, levy and
collect assessments and sell bonds pursuant to this chapter for any
project, if that action is in accordance with Articles XIIIC and
XIIID of the California Constitution.  These assessments shall be
levied within any zone determined by the board to particularly
benefit from a given project.  Assessment areas may overlap.
   602.  Before undertaking any assessment pursuant to this chapter,
the authority shall adopt a resolution declaring its intention to do
so, briefly describing the proposed project, specifying the exterior
boundaries of the area to be assessed, and providing for the issuance
of bonds, if any.  The resolution shall briefly describe any
existing or intended contract with any other governmental agency to
share in financing or performance of the work on the project.  The
resolution shall also direct an officer of the authority to prepare a
report pursuant to Section 603.
   603.  The report shall include all of the following:
   (a) A general description of the project.
   (b) A name for the proposed assessment zone, which may be in the
form "Pajaro River Watershed Flood Prevention Assessment Zone Number
____."
   (c) An estimate of the cost of the project.  If part of the cost
is expected to be paid from contributions from other governmental
agencies, the report shall include an estimate of the expected total
amount of those contributions.
   (d) A plan for financing the project, including a brief
description of the principal amount and maturities of any proposed
bonds, and of any reserve or other special funds required.  The plan
shall include estimates of the annual revenue needed to pay debt
service on bonds and to pay any other expenses arising in conjunction
with the project, including any amounts needed to replenish reserve
or other special funds.
   (e) A specification of a method for annually apportioning the
estimated annual costs of the project among the parcels in the area
to be assessed, and a method for determining the rate of assessment.
The apportionment shall be in proportion to the benefit received by
each parcel, as determined pursuant to Section 506.  The
specification shall be in sufficient detail to allow any property
owner within the district to determine the annual amount that he or
she would have to pay.
   604.  When the report is filed with the authority, the board may
at a public meeting, tentatively approve the report and schedule a
hearing on it not earlier than 30 days and not later than 90 days
after the date on which the report is tentatively approved.  The
hearing may be continued for a period not to exceed six months.
Notice of the hearing shall be published pursuant to Section 6066 of
the Government Code in a newspaper of general circulation in the area
proposed to be assessed, and the first publication shall occur not
later than 20 days before the date of the hearing.  The notice to be
published shall be entitled "Notice of Flood Prevention Assessment
Hearing" and shall include all of the following:
   (a) The time and place of the hearing on the proposed assessments
and bonds.
   (b) A general description of the proposed project and the area
proposed to be assessed.
   (c) A statement that the authority is considering levying annual
assessments on lots or parcels of property within the area of the
proposed zone to pay for the project.
   (d) A statement, if applicable, that the authority is considering
issuing bonds to finance the local share of the cost of the proposed
project.
   (e) The name and telephone number of an employee of the authority
from whom a copy of the report can be obtained and who can answer
questions concerning the project and the hearing.  The authority may
charge the reasonable costs of reproduction for copies of the report,
and shall make copies available for free public inspection at one or
more public places within the area proposed to be assessed.
   606.  Upon approval in accordance with Articles XIIIC and XIIID of
the California Constitution, and if the board determines to proceed
with the levy and collection of assessments and, if applicable, the
sale of bonds, it shall adopt a resolution confirming the report, as
modified, and ordering the levy of the assessments and, if
applicable, the sale of bonds.
   607.  (a) Upon adopting a resolution pursuant to Section 606, the
authority shall record a notice of assessment whereupon the
assessment shall attach as a lien on the property assessed.
   (b) From the date of the recordation of the notice of assessment,
each special assessment levied under this chapter is a lien on the
land on which it is levied.  This lien is paramount to all other
liens, except prior assessments and taxation.  Unless sooner
discharged, the lien continues for 10 years from the date of the
recordation or, if bonds are issued to represent the assessment,
until four years after the date on which the last installment on the
bonds or the last principal coupon attached to the bonds is due.  All
persons have constructive notice of this lien from the date of the
recordation.

      Article 2.  Levy and Collection of Assessments

   701.  The validity of any assessment levied or bond issued under
this chapter shall not be contested in any action or proceeding
unless the action or proceeding is commenced within 60 days after the
assessment is levied pursuant to Section 606.  Any appeal from a
final judgment in such an action or proceeding shall be perfected
within 30 days after the entry of judgment.
   702.  An action to determine the validity of any assessment or
bonds pursuant to this chapter may be brought pursuant to Chapter 9
(commencing with Section 860) of Title 10 of Part 2 of the Code of
Civil Procedure.  In any such action, all findings of fact or
conclusions of the board upon all matters shall be conclusive unless
the action was instituted within 30 days after the findings or
conclusions were made.
   703.  After one or more zones have been created by the authority
for the purpose of imposing assessments pursuant to this chapter, the
board may, by resolution, provide for the levy of the assessments
using the method for apportioning the assessment and for setting the
rate of the assessment as set out in the report confirmed pursuant to
Section 606.  The clerk of the authority shall file a list of all
parcels subject to assessments levied pursuant to this chapter and
the amount of the assessment or assessments levied against each
parcel, with the county auditor on or before August 10 of each tax
year.  The assessments shall be collected in the same manner as
ordinary property taxes are collected and shall be subject to the
same penalties and the same procedure and sale in case of delinquency
as provided for ad valorem taxes.
   704.  (a) In the event of nonpayment of any assessment levied
pursuant to this chapter, and not later than four years after the due
date of the last installment of principal, as a cumulative remedy,
the amount when due and delinquent may, by order of the board, be
collected pursuant to an action brought in the superior court to
foreclose the lien.
   (b) The lien of an assessment levied pursuant to this chapter on
tax-deeded land may be foreclosed in the same manner as the
foreclosure of other real property. The action shall be brought in
the name of the authority.
   (c) The costs of the action shall be fixed and allowed by the
court and shall include reasonable attorney's fees, interest,
penalties, and other charges and advances as provided by this
chapter.  The costs shall be included in the judgment.  The amount of
penalties, costs, and interest due shall be calculated up to the
date of judgment.
   (d) The court may adjudge and decree a lien against the lot or
parcel of land covered by the assessment for the amount of the
judgment and may order the premises to be sold on execution as in the
sale of other real estate by the process of the court, with the same
rights of redemption.
   (e) The board may, by resolution adopted prior to the issuance of
bonds, covenant for the benefit of bondholders to commence and
diligently prosecute to completion any foreclosure action regarding
delinquent installments of any assessments or reassessments that
secure the bonds that are to be issued, or to employ a trustee to do
so on behalf of the bondholders.

      Article 3.  Bonds

   801.  The board may sell bonds or notes of the authority to
finance projects as set out in the report confirmed pursuant to
Section 606.  The board shall authorize the issuance of bonds by
adoption of a resolution which provides for all of the following:
   (a) The denominations, form, and registration provisions of the
bonds.
   (b) The manner of execution of the sale of the bonds.
   (c) The par amount of the bonds to be sold.
   (d) The appointment of one or more banks or trust companies within
the state having the necessary trust powers as trustee, fiscal
agent, paying agent, or bond registrar.
   (e) The execution of a document or indenture securing the bonds.
   (f) The pledge or assignment of the designated assessment revenues
to the repayment of the bonds.
   (g) The interest rate to be borne by the bonds.
   (h) Any other terms and conditions determined to be necessary by
the board.
   802.  The bonds shall be signed by the chairperson of the board,
and countersigned by the trustee.  The bonds may be authenticated by
a paying agent selected by the board, and the signatures of the
chairperson and trustee may be facsimile signatures.  If any officer
whose signature appears on the bonds ceases to be an officer at any
time, the signature shall nevertheless be valid and sufficient for
all purposes.
   803.  The board may sell bonds pursuant to this chapter at public
or private sale at not less than 95 percent of par value.  The
proceeds of the sale of the bonds shall be placed on deposit with the
trustee to the credit of the authority and the issuing assessment
district, and the proper records of the transaction shall be placed
upon the books of the authority.  The bond proceeds shall be used
exclusively to finance or refinance projects
                 and to pay incidental expenses pursuant to the
report confirmed pursuant to Section 606.
   804.  The board may include in the aggregate principal amount of
the bonds to be issued an amount for a reserve fund for the payment
of the bonds.  The amount to be included for the reserve fund shall
not exceed the amount permitted by law.  The reserve fund and all
interest earned on it shall either be used for the payment of debt
service on the bonds, if there is a deficiency, and then only to the
extent of the deficiency, or the funds may be transferred to the
redemption fund for the bonds for advance or final retirement of the
bonds.  Notwithstanding any provision of this section, the amount and
disposition of the reserve fund may conform to the provisions of the
Internal Revenue Code or the regulations of the United States
Department of the Treasury.
   805.  Any bonds or notes issued pursuant to this chapter may be
refunded when and to the extent necessary as determined by the board.


      PART 4.  TERMINATION
      Article 1.  Repeal

   901.  If all of the following events occur, as described below,
this act shall become inoperative on July 1, 2000, and, as of January
1, 2001, is repealed, unless a later enacted statute that is enacted
before January 1, 2001, deletes or extends the dates on which it
becomes inoperative and is repealed:
   (a) The entities described in Section 301 attend regularly
scheduled meetings for the purposes of subdivisions (b) and (c).
   (b) Both of the following occur on or before December 31, 1999:
   (1) All entities described in Section 301 enter into a memorandum
of understanding that provides for the identification, evaluation,
funding, and implementation of flood prevention and control
strategies in the Pajaro River Watershed on an intergovernmental,
cooperative basis.
   (2) The memorandum described in paragraph (1) is submitted to the
Chief Clerk of the Assembly and the Secretary of the Senate.
   (c) On or before June 30, 2000, both of the following occur:
   (1) A joint powers agency is formed as authorized under Chapter 5
(commencing with Section 6500) of Division 7 of Title 1 of the
Government Code, pursuant to a joint powers agreement entered into by
all entities described in Section 301, for the purpose of
accomplishing the objectives listed in paragraph (1) of subdivision
(a).
   (2) Evidence of the formation of a joint powers agency pursuant to
paragraph (1) is submitted to the Chief Clerk of the Assembly and
the Secretary of the Senate.
  SEC. 3.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because a
local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code.
